Credit Repair III: The Credit Repair Process
Credit Repair III: The Credit Repair Process
Today we’re going to take a peek under the hood of the credit repair machine and see what makes it tick. First of all, let’s just be clear on one thing: credit repair isn’t a terribly difficult or complicated procedure; given enough time, pretty much anyone can do it. I’m going to break down the credit repair process into three basic steps: identification, documentation, and elimination. Each step is essential and effective credit repair requires that none of these elements be ignored. Let’s have a look at each one in more detail:
Step 1: Identification – Target Inaccurate Items for Removal
Before you can do anything, you’re going to need to get copies of your credit reports. These can be obtained from each of the three major credit bureaus, Experian, Equifax, and TransUnion. Make sure to get a copy from each bureau, as they each collect information independent of the other two; meaning that one credit report could contain an error that isn’t reported on the others. Since many lenders pull all three credit reports when assessing you for a loan, it is wise to repair all three of your credit reports, not just one.
Once you have copies of your credit reports, make several more copies of each. You’ll be needing quite a few of them. Search each of the three credit reports for errors or other inaccurate, negative information. Look for accounts that don’t belong to you, on-time payments that were reported as being late, inquiries that you never authorized, and so forth. Highlight these items and note the creditor associated with those particular items.
Step 2: Documentation – Obtain as much supporting documentation as possible
Once you know which items you’re going to try and remove, you need to start amassing related paperwork. Contact the creditor associated with each negative item, you can find their contact information at the bottom of each credit report and request the documentation behind each negative item. You’re looking for account statements, delinquency notices, court papers, new account notices, any documents signed by you during the relevant time period, and so forth. While you’re acquiring this paperwork, perform a similar search within your own personal records; find as much evidence as you can that would support your claim that a negative item is inaccurate and should be removed. Make copies of all the documents that you dig up during this process.
Step 3: Elimination – Contact Creditors and Dispute the Inaccurate Information
First, contact the lenders who reported the inaccuracy and ask them to correct the negative item. This is often the quickest and easiest path to cleaning up your report. That being said, it is not uncommon for lenders to prove uncooperative during this process. This is where you employ the trusty dispute letter. A dispute letter is simply a document that lists the negative, inaccurate items on your report and the reasons why each is inaccurate. Be certain to include your personal information, a copy of your credit report, and any and all documentation that is relevant to your disputes. If you don’t feel comfortable writing your own dispute letter, simply do a search online for “dispute letter template” and you’ll find a large array of pre-made dispute letters for use in correcting your credit report.
And there you have it! There are numerous do-it-yourself websites and forums to go to if you need additional guidance in your quest to repair your credit, but you now have the basics of credit repair under your belt. All I can say now is good luck and happy cleaning!
