Managing credit reports can be an often confusing task if you’re a layman. Approaching it in an organized and efficient manner to root out any sources of bad credit is a task sometimes best left to professional agencies.
A professional can help you understand why your credit depreciated to such an extent and how to improve it.
When we talk about credit repair or credit restoration, we are not talking about debt repayment. One cannot just snap his fingers and make the consequences of all his bad spending decisions vanish in a jiffy. However, there is a way to start making that steady climb to improve your FICO score.
WHY IS FICO SCORE IMPORTANT
A FICO score details your reputation and trustworthiness. So, if in the future you want to obtain a loan and your FICO score happens to be abnormally low, it’s going to create a lot of obstacles for you. The same rule will apply when you’re trying to secure a mortgage or gain insurance.
Credit repair means figuring out why your credit points are so negative. It may be due to some oversight on your part, or there could be mistakes in the credit report. There could be discrepancies or outdated items that have been overlooked.
Now you may be wondering what is the need of hiring a credit repair company if you can do it yourself. Well, we won’t discourage you if you feel you can do it yourself.
There are three credit reporting companies: TransUnion, Experian, and Equifax. There are obligated to provide you a free copy of your credit report provided that you ask for it.
You can study the report thoroughly or let your hired agency have a look, and if you find any inconsistency or discrepancy, you can report it.
You are well within your rights to dispute any mistakes within your report, and it doesn’t cost you anything. You should pen a letter to the company detailing precisely what you feel is wrong with the report. Include all of it, so you don’t have to send multiple letters.
It is likely that they will require documents to certify your credentials so make sure to attach copies of everything including your credit report. Do not attach the originals.
The reporting company is required to investigate your claims within thirty days of receiving yours. The credit reporting companies work in conjunction with the information providing companies, so that’s the first place they contact to recheck the information and to look for mistakes.
It is possible that the reason your credit score is so negative is that someone has been making bogus purchases using your account information. It may take some extensive repair work to get rid of the problems.
We do advise you to think long term if you wish to improve your credit score; Settle outstanding debts and avoid opening a lot of new credit cards, so that momentarily you can gain some fresh credit.