Straightforward Consequences From Credit Repair
Low credit scores are relatively common these days and the recession in the economy has just made it worse. You can have a great credit score and miss just one payment and your score can dip as much as 100 points or more. One problem is that most people do not have any idea about how credit scores are measured, how they can drop and how to increase them.
It is actually a compilation of a few things that determine your credit score. Making your payments in a timely manner is crucial of course, but there are other considerations also. The credit bureaus look at the discrepancy between how much credit you have available and how much you have used. If you have maxed out your credit cards or other lines of credit your credit scores will diminish.
If you want to increase your credit scores make sure that you are only using 30% or less of any accessible credit lines, including credit cards. If you have a higher credit limit yet you are using very little of it you are considered to be a better risk.
Longer-term credit is regarded higher than shorter-term credit so if you have older credit cards use them more frequently than the newer ones. Of course, all of the same rules apply, make your payments on time and never exceed more than 30% on the balance. Paying it off every month rather than carrying a balance is always best.
It is necessary you know that you have the legal right to dispute any negative information found on your credit score. The Fair Credit Reporting Act was enacted to protect consumers from erroneous information on their credit. When you file a dispute the bureaus and the creditors must prove the accuracy of the debt within a short period of time. If they cannot or do not prove the accuracy within the allotted time period then the information must be removed from the credit report.
The credit bureaus and the creditors must have 30 to 45 days to prove the accuracy of their reporting but the good news is that it is estimated that as many as 40% of all disputes are not confirmed within the grace period. You can use this fact you your benefit as you repair your credit.
As you begin disputing the negative information on your reports make sure that you keep exact and detailed records. Send all correspondence via certified mail and make sure you keep accurate dates. Also make sure you send a separate letter for each dispute.
Despite the fact that it may take time, energy and patience to repair your credit it can be done. You have the right to repair your credit and it is worth every effort.
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