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Why is credit repair important? It comes down
to one simple thing - saving money.
Everyone has a credit
report. It turns out that about 70% of all credit reports contain
inaccurate or untimely information. This can have an adverse effect
on your credit score and that can cost you money. Credit repair is
the process you undertake to remove or correct these errors on your
credit report.
The great thing about repairing your credit
is it's not difficult to do. The first step is to obtain a copy of
your credit report. If you have been turned down for a loan or
credit, you are entitled to a free credit report within 60 days of
the rejection. You are also entitled to 1 free report from each of
the 3 credit reporting agencies each year.
The next step
is to let the credit reporting agency know in writing what
information you think is inaccurate and request that it be removed
or corrected. Make sure you send the letter by certified mail so you
have a receipt with a record of when you sent it. Always keep copies
of your letters.
The credit reporting agencies have 30
days to investigate your dispute and get back to you. If they find
the information under dispute to be inaccurate, they must notify all
three credit reporting agencies and the creditor or organization
that provided the information. All of them must correct the
information in your file.
When the investigation is
complete, the credit reporting agency will provide you with the
results and a copy of your updated credit report for your review.
If the investigation does not resolve the issue, you can request to
have a statement of the dispute added to your file and on future
credit reports.
Then you need to send a letter to the
creditor or organization that provided the inaccurate information,
telling them that you dispute their information. Include all
documents that support your position. If the creditor reports the
information to a credit reporting agency, it must also include a
notice of the dispute.
So why go through this exercise?
Your credit score determines how much interest you pay on loans or
credit. If you add up how much interest you pay on your car loan,
home mortgage and insurance, you can see just how much money is at
stake - it can be thousands, tens of thousands or even hundreds of
thousands of dollars. It can even determine if you get a job or not.
Credit repair is vital in making sure your credit report is accurate
so you can save money - sometimes a great deal of money.
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