Credit Problems — What you can do to get back on track

If you have credit problems beware of credit repair scams. If a company offers surefire results, or tells you that can fix your credit in 30 days, tread carefully. Often their tactics are against the law.

Thing to watch out for:

  • They request payments before they have provided services. Under the Credit Repair Organizations Act, credit repair companies can’t make you pay until after services are provided.
  •  Credit repair companies must tell you your right about the many things you can do
  • If they tell you that you are not allowed t to contact the three major credit bureaus directly
  • If they suggest you invent a new identity and get an Employer Identification Number to bypass using a Social Security number they could be leading you into committing fraud.
  • If they advice your to dispute all the information on you credit report even though it is accurate, they are wasting your time.

Know you rights:

File a dispute with the credit bureau if the information on you report is wrong or only partially there.

Free credit report are available if some has taken adverse action against you due to your credit score, plus you are entitled to agree credit report annually

  •  To order go to annualcreditreport.com, call 1-877-322-8228, or mail request to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

  • There is no cost to dispute errors or outdated information on your credit report

How to clean up your credit score

Writing a dispute letter, here’s a sample:

March 24, 2012
Mary Martin-Smith
1234 Main St.
AnyCity, AS 55555

Complaint Department
Local Campany XXX
66789 main St.
AnyCity, AS,  55555

Dear Sir or Madam:

I dispute the debt listed on my credit report. I’ve enclosed a copy of my credit report with the disputed itemed marked.

I paid you in full for this ______________. You reporting it as unpaid to the credit bureau is incorrect and I request that you immediately correct the record and get this item removed from my credit report.

Enclosed are cancelled checks showing that I paid off this account

Yours Truly,

Ms. Mary Martin-Smith

What if you really owe the money and all the items on you credit report with are lowering your score are true?

  • Try contacting those you owe money and make arrangement for payments to repay
  • Consider a credit counselor to help you make a budget, set up a plan and stick to it

How to rebuild your credit fast

Fast is unlikely and beware of those who promise it, but over time you can rebuild your credit. Start small put money in a savings account and then ask the bank for a loan for that amount of money using you savings account as collateral. Repay the loan promptly. Or use money in a savings account for collateral to get a low balance credit card pay it off promptly

How to clean credit report

  • Dispute inaccurate information – see sample letter above
  • Arrange for payment of debts for quick removal from your credit record by the creditor; get this in writing, along with the terms of repayment
  • Beware of credit repair companies who offer quick fixes!

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