Countless people are under pressure with low credit scores and awful credit reports and the current economic conditions are just making it worse. Many of the normal rules of the past are becoming outdated and numerous people may not know precisely where to turn or what to do about credit problems.
A small number of people realize just what a credit score is composed of. For example it is not common knowledge that your credit score can be reduced by inquiries on your account and by your debt to credit ratio. The truth is that you are considered to be riskier if it looks as if you are shopping for credit so inquiries reduce your score and if you have credit and use it you are also considered a higher risk. In order to have a high credit score you need to decrease your debt to less than about 15 to 35% of the credit you have available and no more.
Under the FCRA or the Fair Credit Reporting Act you do have the right to be given one free copy each year of your own credit report from each of the major credit reporting agencies. It is wise to get this report each year so you can track your report and make sure that it is looks as positive as possible.
One reason is because it is projected that as many as 75% or more of all credit reports contain mistakes and inaccuracies. These mistakes can cause you many difficulties if they come up when you are trying to obtain credit. You can avoid many of these problems if you get your report every year and check it out for mistakes and inaccuracies.
As per the FCRA you what’s more have the right to dispute mistakes or inaccuracies on your credit report. Once the credit bureaus receive your dispute they have 30 to 45 days to provide evidence that what they are reporting is truthful and accurate. It has been estimated that as many as 45% of the disputes received are not verified within the time frame. If the reporting is not verified within the time frame it must be deleted from the report. As a consumer you can use that fact to your benefit is you take the time to issue the dispute.
Besides making sure that your credit report is clear of mistakes and inaccuracies every year there are also other things that you can do to improve your credit score. Debt to credit ratio is very important so you can either get your credit limits increased or pay down your debt so that your debt does not exceed 15 to 35% of your available credit. In addition you should avoid all inquiries into your report. Do not shop for credit unless you are sure that you will get it and then have the creditor combine the inquiry into the loan so that you do not show any inquiries.
You can take the steps needed to repair your credit on your own or you can employ a professional to help you. If you hire a professional make sure you do your research and go with a reputable company with a good track record. Having credit troubles is bad enough without losing money to a scammer too.
But don’t think that credit repair in only a myth because it is not. Congress passed the FCRA so that discrepancies and problems could be removed from credit reports and you need to make sure that your own credit report looks as good as feasible.
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