Thanks to the Fair Credit Reporting Act, any citizen of the US may challenge data contained in their credit reports. Unfortunately, information collected by Experian, Equifax, or TransUnion may be inaccurate, which drags the score down. The consequences are more serious than you may think. Aside from banks, landlords, insurers, and employers use this indicator to evaluate applicants. So, what is the right way to repair it?
It is not enough to claim that some details (for example, bankruptcy or missed payment) are inaccurate. The reporting agency will take no action without evidence. This means repair includes a lot of investigative work. Unsurprisingly, many consumers prefer to hire top credit fixing companies instead of the hassle of DIY repair. If you are determined to do everything on your own, follow our guide.
1. Obtain Your Reports
To establish that the score is unfair, you need to collect your reports. This is easy to do online — just go to www.annualcreditreport.com and submit your request. Download the files from Experian, Equifax, and TransUnion — the biggest agencies in the US. As they do not share information with each other, obtaining all three copies is essential.Reports may be collected for free once a year. Now, due to the pandemic, this is possible weekly. To view the score, you could use smartphone apps like Mint or Credit Sesame. It is also accessible via www.myfico.com.
2. Find Mistakes
Now, you should examine the records thoroughly. Scrutinize them line by line to find inconsistencies. Misspellings may have no effect on the total, while negative events stay on records for 7-10 years. For example, you may notice a judgment, eviction, or bankruptcy that is completely false. Unfortunately, some consumers discover they have been a victim of fraud, and scammers took loans in their name.3. Mark the Errors
Now, circle the errors on a printed copy of each flawed report. You will need to include all the details in the form, so the bureau knows exactly which items are being challenged.4. Inform the Bureau(s)
Now, you are ready to contact the respective agencies. Each bureau has a special website section for dispute resolution. These contain instructions and forms. If all of the reports are flawed, you need to file three separate disputes on the corresponding pages. Equifax and TransUnion also accept disputes by phone.It is advisable to contact the bureaus in writing — the Federal Trade Commission has free templates for formal letters. Send them by certified mail to have hard evidence of the exchange. Now, you should wait. Every reporting agency has 30 days to investigate and get back to you. If the changes are accepted, you will receive a free copy of the revised report. The bureau may also request more evidence, which will delay resolution.
Keys to Success
As you can see, it is vital to collect enough proof from the start. If there is back and forth, your repair can take many more months. Therefore, be organized and collect relevant data. For instance, if you want a credit card account to be marked as closed, you should provide a record of its closing. If there are false collections, prove that the debt has been settled — for example, the final receipt.A Quicker Solution
A reliable credit repair company will collect, analyze, and dispute the data on your behalf. All firms have a recurring monthly fee, and customers may cancel their membership when they like. The key advantages of delegation are speed and convenience.A team of professionals will identify the most damaging entries and gather sufficient evidence from the start. They will liaise with the bureaus, lenders, and collection agencies involved. Meanwhile, you can sit back and keep an eye on the progress via an app or a web portal.
To choose the best provider, pay attention to BBB ratings, expert reviews, and feedback from customers. Usually, the services are divided between packages, with the basic ones containing only analysis and disputes. Add-ons may include the official FICO tracker, TransUnion alerts, identity theft protection, a dedicated credit line, etc.
The best repair providers are also educators. They raise their customer’s literacy through guidance and online resources. You will understand how your score is calculated, which elements are the most influential, and how to rebuild the total.